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the AD curve from the effects of
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- Derive the AD curve using the IS - LM framework with detailed explanation.Suppose the government sharply increases the minimum wage, raising the income of many workers. Determine the effects of this decision on the AD-AS model in the short and in the long run..Derive the AD curve using the IS-LM model.
- Several factors can cause the SRAS curve to shift; these factors include a change in the cost of inputs, a change in taxes, and even a change in seller expectations. a. True b. FalseThe Keynesian Y/AE model and the IS/LM model differ in terms of their treatment of investment production aggregate supply closed economy pricesStrikes across a wide range of industries in South Africa in the first half of 2020can be illustrated in the AD‐AS model as a:choose the correct answer(a) Leftward shift of the AD curve; (b) Rightward shift of the AD curve; (c) Leftward shift of the AS curve; (d) Rightward shift of the AS curve
- Which of the following is not an assumption of the IS/LM model? Short-run model Interaction between money and goods market There are unemployed resources Prices are sticky Demand is passiveConsider a standard AD-AS model. If the SRAS curve is steep, a temporary tax cut leads to a relatively small increase in inflation and relatively large decrease in unemployment.Answer true, false, or uncertain. Please briefly explain your answer.Strikes across a wide range of industries in South Africa in the first half of 2020 can be illustrated in the AD‐AS model as a: (2) (a) Leftward shift of the AD curve; (b) Rightward shift of the AD curve; (c) Leftward shift of the AS curve; (d) Rightward shift of the AS curve
- Compare and contrast the ideas of Keynes and the policies based on his ideas with the ideas and policies of the supply-side economists who came to prominence with the election of Ronald Reagan in 1980.Show the change, if any, from SRAS to SRAS1 with an arrow indicating direction of change and explain why the change.Macroeconomic forecasts from different computer models are usually Very different because the models are based on different data sets, different assumptions, and different macroeconomic theories. Very similar because the models use the same data, and standardized assumptions so it does not matter whether a supply-side economist or a Keynesian economist conducts the research. Very similar because the models must conform to high government regulatory standards. About the same because political objectives never conflict with good economic policies. Very different because it is impossible to determine who funded the research.
